JPMorgan Said to Be Betting Argentine Securities Will Gain
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JPMorgan Chase & Co. plans to hold some of the $3.25 billion of Argentine bonds it bought from Repsol SA as a wager the securities will rally and hasn’t hedged them, according to a person with direct knowledge of the bank’s strategy.
JPMorgan paid $2.8 billion for the 10-year notes -- about 86.6 cents on the dollar -- with the intent to sell them at a profit in the secondary market, said the person, who asked not to be identified because he isn’t authorized to speak publicly about the matter. The bank sold some of the notes today and will keep some of the securities longer term, the person said, without giving amounts. Veronica Espinosa, a spokeswoman at the New York-based bank, declined to comment on the deal.